● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at HKD 3.67 HKD in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the HKD 3.67 support.
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 49% by 2021.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Its low valuation, with P/E ratio at 7.37 and 7.17 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 4.95 HKD